Get stories like this delivered straight to your inbox. Sign up for The 74 Newsletter
For the first five years of children’s lives, many families are experiencing child care challenges — which have been at the center of discussions among the NC Task Force on Child Care and Early Education since Gov. Josh Stein established the group in March.
But gaps in child care do not disappear once children start kindergarten. Finding affordable, high-quality child care solutions for school-age children should be part of the state’s continuum of care, advocates and providers told the task force Monday.
“The parents I work with don’t experience child care as a 0 to 5 situation,” said Beth Messersmith, task force member and campaign director of MomsRising’s North Carolina chapter. “They experience it as a 0 to 12 situation, or older.”
Many families need care before and after the school day and during the summer months in order to work and keep students safe and engaged. However, four in five students in North Carolina do not have access to the out-of-school care they need, according to a report from the national Afterschool Alliance.
Students, including young children, are instead spending time unsupervised. About 3% of K-5 students, 11% of middle school students, and 34% of high school students spend an average of 5.7 hours without adult supervision per week, according to the same report.
Providers shared their struggles to serve children despite high demand and the benefits children, families, and businesses see when out-of-school care is accessible. After-school programs face many of the same challenges as child care programs. And some child care programs serving children before kindergarten also serve school-age children when school is out of session.
Families need care that works with their schedules and engages students in activities that support them academically and socially, said Elizabeth Anderson, executive director of the North Carolina Center for Afterschool Programs, a nonprofit under the Public School Forum of North Carolina. That requires funding, workforce supports, transportation, and creative partnerships, Anderson and a panel of providers said.
“The more we can create a spectrum of opportunities for birth through grade 12, the more that children and families in our state are going to recognize the positive economic impacts of those investments,” Anderson said.
Report due in December on child care solutions ahead of short session
The governor’s task force will release a report by the end of December with recommendations on how the state should expand access to high-quality, affordable child care. Stein formed the group earlier this year as pandemic-era child care funding ran out and advocates across the state and country called for consistent public investment to meet families’ needs.
The state legislature did not allocate new funding for child care this year and did not pass a new comprehensive budget. Some new funding, though lower than advocates’ and state officials’ requests, was included in budget proposals from Stein’s office and the House and Senate, but those proposals were not ultimately passed.
The main child care legislation that was passed made regulatory changes to loosen staffing requirements and allow providers to serve more children in classrooms with appropriate space and teacher-to-child ratios.
The task force will meet again in February, though a date is not yet set. Ahead of next year’s short session, members on Monday discussed what role the group should play in moving policy solutions forward, including six recommendations in the group’s interim report released in June:
- Set a statewide child care subsidy reimbursement rate floor.
- Develop approaches to offer non-salary benefits to child care professionals.
- Explore partnerships with the University of North Carolina System, N.C. Community Colleges System, and K-12 public school systems to increase access to child care for public employees and students.
- Explore subsidized or free child care for child care teachers.
- Link existing workforce compensation and support programs for early childhood professionals into a cohesive set of supports.
- Explore the creation of a child care endowment to fund child care needs.
As the state faces many funding requests, federal funding uncertainty, and slim tax revenue, members said more legislators need to be aware of the state’s child care crisis and why it’s relevant to the state’s economy and future.
“Maybe we have some more work to do around actually educating and engaging members of the General Assembly to get this on their radar and build more champions,” said Susan Gale Perry, CEO of Child Care Aware of America and task force member.
Funding to address issues of access, quality, and affordability is needed, members said, and considering existing funding streams rather than new ones might be more politically feasible in the short term.
“Certain proposals about, ‘Let’s just go raise taxes,’ are probably not going to be something that is going to get across the aisle agreement, but it does create the opportunity to looking at areas where tax rates are already set, or certain revenue streams are already existing,” said Mary Elizabeth Wilson, task force member and the Department of Commerce’s chief of staff and general counsel.

Sen. Jim Burgin, R-Harnett, who chairs the task force along with Lt. Gov. Rachel Hunt, said he and other legislators will be introducing legislation that would double the tax rates on sports gambling.
“If it’s for the children, everybody needs to support it,” Burgin said. “And I don’t believe in gambling … I’m doing it because we need the money.”
Child care fixes would also increase tax revenue, said Erica Palmer-Smith, executive director of nonprofit NC Child and task force member.
“(The generated revenue) would more than cover the overall cost that we would need to put in in the long run to fix the child care system,” Smith said.
‘The gap between 3 and 6 and between May and August’
Many families either do not have an after-school program nearby, do not have transportation to programs, or cannot afford programs, Anderson said in a presentation to the group Monday.
In 2025, 188,295 children participated in after-school programs, but 664,362 additional children would have if they had access, according to the presentation.
Programs are funded through a mix of private grant funding, public funding, and parent tuition. The two biggest funding sources are from the federal government: the Child Care Development Fund, which funds child care subsidies for young children and school-age children up through 12 years old, and 21st Century Community Learning Centers through the Department of Public Instruction.
After-school programs exist in all different types of facilities — community-based organizations, schools, faith-based organizations, and child care centers and home-based programs. Anderson described these programs as “folks stepping in to fill the gap between 3 and 6 and between May and August.”
Students benefit when they access out-of-school programs, she said. In the case of the 21st Century Community Learning Centers, 72% improved their attendance in the 2023-24 school year, 75% of students had decreased suspensions, and 90% improved their overall engagement in school.

Anderson said the skills employers are seeking align with those that children are gaining from after-school programs, like problem-solving, teamwork and collaboration, communication, and leadership.
“We know that our after-school programs are an important place where children get to interact with one another and interact with mentors and positive adult figures that help them build these skills, which ultimately help them to become more successful, independent earners in the future,” she said.
Like child care programs in the early years, after-school programs not only help children, but allow parents to work. In a survey from the national report, 91% of parents said these programs help them be able to keep their job.
Families face particular challenges in the summer months. A national survey from LendingTree of more than 600 parents found this year that 66% of parents who seek summer care struggle to afford it, and 62% had taken on debt to pay for summer care.
Anderson said more conversations on child care should extend beyond the early childhood period. She pointed to research from the University of California that found educational and occupational attainment improvements were higher when children had access to both early care and education and out-of-school care once they entered school.
“It is something that parents need and want,” she said. “I think that we talk a lot about what happens for children birth to 5, but a child does not turn 5 years old and suddenly not need opportunity.”
Subsidy funding and reform would help, experts say
North Carolina is one of 23 states that does not have state level funding for after-school care, Anderson said. Anderson and panelists said funding is needed to retain teachers, increase access, provide transportation, and help families afford care.
Jon Williams, manager of the statewide School-Age Initiative at the Southwestern Child Development Commission, is focused on increasing the quality of out-of-school care across the state. He said the transient nature of school-age professionals disrupts consistency for children, families, and programs. A burdensome orientation process creates challenges for owners and directors constantly onboarding new people.
Williams said business training for after-school program directors would be helpful. Many have educational backgrounds and lack the business expertise to be successful in a challenging environment.
“They don’t have that financial background that is needed to run a business, and that creates a lot of financial instability,” Williams said. “If they don’t know how to orient or get new staffing in, that creates a huge problem.”

A policy change that several panelists and task force members raised as a need is to align the eligibility requirements for child care subsidies across age groups. Right now, families who earn less than 200% of the federal poverty line are eligible for child care subsidies when their children are 5 years old or younger. But for school-age children, the threshold lowers: families must make less than 133% of the poverty line.
That disrupts care for families whose children need after-school care going to kindergarten or for families with multiple children of different ages who would prefer to send all of their children to one program.
A statewide subsidy floor, which is one of the policy priorities of the task force, would also help school-age care providers, said Erica Simmons, vice president of youth development at YMCA of Catawba Valley.
The floor would raise the per-child rate that child care programs receive to the state’s average rate. In cases where programs receive more than the average rate, they would continue receiving the same amount.
“(The floor) would make it a little more equitable,” Simmons said.
She said it costs similar amounts to provide care at her licensed programs in rural and urban communities. But the subsidy rates are much lower in rural areas.
“We have the same requirements for staff, we have the same programming requirements,” she said. “There’s no difference in the amount that we spend per program as an organization. However, there is a very big difference in what we are able to capture for subsidy. So there’s a big funding gap.”
Williams said there was a gap of $8,000 for one program just last month between the cost of services and the subsidy reimbursement. Annually, some programs in her network accrue around $100,000 in funding gaps for caring for children through subsidy.

Programs also receive subsidy payments retroactively. Changing the timing of funding could relieve some of the financial burden from programs, Williams said.
“I get paid via subsidy after I provide the services, and that’s a huge problem if I’m already in the red,” he said.
“… When we think about the mental health of our administration and our directors, that just adds fuel to the flame,” Williams said. “And it creates another gap, a 30-day gap, where I can say, ‘I can’t do this anymore,’ and then that care drops off. So we have to rethink how we get that money out in the state. We have to rethink the rates at which they are given.”
Panelists also shared that liability insurance rates have risen drastically. Williams said her program’s rates have increased by 44% over the last year, a trend among child care providers overall. A 2024 survey from the National Association for the Education of Young Children (NAEYC) found 80% of respondents saw their liability insurance costs increase in the last year and 62% reported difficulty finding or affording it.
Updates on care for public employees, workforce supports, and funding models
The task force has been split up into three subgroups which have been studying how to move toward the group’s six recommendations.
Samantha Cole, child care business liaison at the Department of Commerce, said a subgroup focusing on expanding child care access for public employees has looked at models across K-12, community college, and UNC-system schools to create child care solutions.
They studied on-campus early learning models at Buncombe County Schools’ Learning Labs, North Carolina A&T University’s Child Development Laboratory, and the Regional Center for the Advancement of Children at Haywood Community College.
“We really see that there have been a lot of successes that have come about in these three examples and others, but they’re hyperlocalized,” Cole said. More external communication is needed for other campuses to understand how and why peer institutions are offering child care.
Madhu Vulimiri, senior advisor for health and families policy for Stein’s office, said the subgroup focused on workforce compensation and supports has been studying strategies to ensure early childhood teachers have access to non-salary benefits like health insurance.
They have studied the possibility of adding early childhood teachers as an eligible population for the State Health Plan, subsidizing ACA marketplace premiums through state dollars, and educating early childhood providers about the recently launched Carolina Health Works, which offers options for groups of small businesses.
The group is also studying how existing workforce supports like TEACH scholarships, child care academies, and apprenticeships could be more seamlessly tied together to strengthen the early childhood profession. They have requested that the Hunt Institute create a map to demonstrate what supports are available in what counties.

“That will help us see more holistically, where do we have resources and where are there gaps, and help us hopefully target future resources that we might have to expand those statewide,” Vulimiri said.
The third group, which is focused on financing, has been studying several states’ approaches to endowments and other funding mechanisms for child care, including Nebraska, Connecticut, Arizona, Montana, and Washington, D.C. They aim to develop a paper that weighs the options for North Carolina and analyses costs and benefits of each.
This article first appeared on EdNC and is republished here under a Creative Commons Attribution-NoDerivatives 4.0 International License.
Did you use this article in your work?
We’d love to hear how The 74’s reporting is helping educators, researchers, and policymakers. Tell us how

















